12–31
PROBLEM 12B–3
(1)
Balance Sheet
Credit
1,470
5,060
1,810
1,210
10,580
20,130
5,020
25,150
Debit
2,300
3,300
1,350
3,700
4,300
25,150
25,150
Income Statement
Credit
10,200
96,440
13,300
3,180
290
123,410
123,410
Debit
10,900
3,150
2,630
63,700
2,610
11,000
10,300
13,200
390
510
118,390
5,020
123,410
Adjusted Trial Balance
Credit
1,470
5,060
1,810
1,210
10,200
96,440
13,300
3,180
290
143,540
JUSTIN’S SUPPLIES
JUSTIN’S SUPPLIES
WORKSHEET
FOR THE YEAR ENDED DECEMBER 31, 201X
Debit
2,300
3,300
1,350
3,700
4,300
10,900
3,150
2,630
63,700
2,610
11,000
10,300
13,200
390
510
143,540
Adjustments
Credit
(E) 510
(D) 390
(B) 10,200
(C) 290
22,290
Debit
(C) 290
(A) 10,900
(D) 390
(E) 510
22,290
Trial Balance
Credit
1,080
5,060
2,100
1,210
96,440
13,300
3,180
132,950
Debit
2,300
3,300
1,860
3,700
4,300
3,150
2,630
63,700
2,610
11,000
10,300
13,200
132,950
Account Titles
Cash
Accounts Receivable
Prepaid Insurance
Equipment
Acc. Dep., Equip.
Accounts Payable
Unearned Training
Fees
Mortgage Payable
P. Justin, Withdrawals
Income Summary
Sales
Sales Returns & Allow.
Sales Discount
Purchases
Purch. Returns &
Allow.
Purchases Discounts
Freight–in
Advertising Expense
Rent Expense
Salaries Expense
Training Fees Earned
Dep. Exp., Equipment
Insurance Expense
Net Income
Merch. Inv. 1/1/1X
PROBLEM 12B-3 (CONTINUED)
(2)
JUSTIN’S SUPPLIES
INCOME STATEMENT
FOR YEAR ENDED DECEMBER 31, 201X
Revenue:
Gross Sales
$96
4
4
0
00
Less: Sales Ret. & Allow.
$3
1
5
0
00
Sales Discounts
2
6
3
0
00
5
7
8
0
00
Net Sales
$90
6
6
0
00
Cost of Goods Sold
Merch. Inventory, 1/1/1X
$10
9
0
0
00
Purchases
$63
7
0
0
00
Less: Purch. Ret. & Allow.
$ 13
3
0
0
00
Purchases Disc.
3
1
8
0
00
16
4
8
0
00
Net Purchases
47
2
2
0
00
Add: Freight-In
2
6
1
0
00
Net Cost of Purchases
49
8
3
0
00
Cost of Goods Avail for Sale
$60
7
3
0
00
Less: Merch. Inv. 12/31/1X
10
2
0
0
00
Cost of Goods Sold
50
5
3
0
00
Gross Profit
$40
1
3
0
00
Operating Expenses:
Advertising Expense
$11
0
0
0
00
Rent Expense
10
3
0
0
00
Salaries Expense
13
2
0
0
00
Depreciation Expense, Equip.
3
9
0
00
Insurance Expense
5
1
0
00
Total Operating Expenses
35
4
0
0
00
Net Income from Operations
$4
7
3
0
00
Other Income:
Training Fees Earned
2
9
0
00
Net Income
$5
0
2
0
00
PROBLEM 12B-3 (CONTINUED)
JUSTIN’S SUPPLIES
STATEMENT OF OWNER’S EQUITY
PROBLEM 12B-3 (CONTINUED)
JUSTIN’S SUPPLIES
BALANCE SHEET
DECEMBER 31, 201X
Assets
Current Assets
Cash
$2
3
0
0
00
Accounts Receivable
3
3
0
0
00
Merchandise Inventory
10
2
0
0
00
Prepaid Insurance
1
3
5
0
00
Total Current Assets
$17
1
5
0
00
Plant and Equipment:
Equipment
$3
7
0
0
00
Less: Acc. Depreciation
1
4
7
0
00
2
2
3
0
00
Total Assets
$19
3
8
0
00
Liabilities
Current Liabilities
Mortgage Payable
$
8
2
0
00
Accounts Payable
5
0
6
0
00
Unearned Training Fees
1
8
1
0
00
Total Current Liabilities
$7
6
9
0
00
Long-Term Liabilities
Mortgage Payable
3
9
0
00
Total Liabilities
$8
0
8
0
00
Owner’s Equity
P. Justin, Capital
11
3
0
0
00
Total Liabilities and Owner’s Equity
$19
3
8
0
00
PROBLEM 12B-3 (CONCLUDED)
(3)
GENERAL JOURNAL
PAGE 2
Date
Account Titles and Description
PR
Dr.
Cr.
201X
Adjusting Entries
Dec.
31
Income Summary
10
9
0
0
00
Merchandise Inventory
10
9
0
0
00
31
Merchandise Inventory
10
2
0
0
00
Income Summary
10
2
0
0
00
31
Unearned Training Fees
2
9
0
00
Training Fees Earned
2
9
0
00
31
Depreciation Expense, Equipment
3
9
0
00
Accumulated Depreciation, Equipment
3
9
0
00
31
Insurance Expense
5
1
0
00
Prepaid Insurance
5
1
0
00
Closing Entries
31
Sales
96
4
4
0
00
Training Fees Earned
2
9
0
00
Purchases Returns and Allowances
13
3
0
0
00
Purchases Discount
3
1
8
0
00
Income Summary
113
2
1
0
00
31
Income Summary
107
4
9
0
00
Sales Returns and Allowances
3
1
5
0
00
Sales Discount
2
6
3
0
00
Purchases
63
7
0
0
00
Freight-In
2
6
1
0
00
Advertising Expense
11
0
0
0
00
Rent Expense
10
3
0
0
00
Salaries Expense
13
2
0
0
00
Depreciation Expense, Equipment
3
9
0
00
Insurance Expense
5
1
0
00
31
Income Summary
5
0
2
0
00
P. Justin, Capital
5
0
2
0
00
31
P. Justin, Capital
4
3
0
0
00
P. Justin, Withdrawals
4
3
0
0
00
PROBLEM 12B-4
(1)
Balance Sheet
Credit
Debit
1,340
1,210
Income Statement
Credit
Debit
CREW LUMBER
WORKSHEET
FOR THE YEAR ENDED DECEMBER 31, 201X
Adjusted Trial Balance
Credit
Debit
1,340
1,210
Adjustments
Credit
Debit
Trial Balance
Credit
Debit
1,340
1,210
Account Titles.
Cash
Accounts Receivable
PROBLEM 12B-4 (CONTINUED)
(2)
CREW LUMBER
INCOME STATEMENT
FOR YEAR ENDED DECEMBER 31, 201X
Revenue:
Gross Sales
$22
4
0
0
00
Less: Sales Ret. and Allow.
1
9
0
00
Net Sales
$22
2
1
0
00
Cost of Goods Sold
Merchandise Inv. 1/1/1X
$ 4
3
5
0
00
Purchases
$15
2
0
0
00
Less: Purch. Discount
$
2
3
5
00
Purch. Ret. and Allow.
2
8
0
00
5
1
5
00
Net Cost of Purchases
14
6
8
5
00
Cost of Goods Avail. for Sale
$19
0
3
5
00
Less: Merch. Inv. 12/31/1X
5
3
0
0
00
Cost of Goods Sold
13
7
3
5
00
Gross Profit
$8
4
7
5
00
Operating Expenses:
Wages Expense
$ 2
4
5
5
00
Advertising Expense
3
5
0
00
Rent Expense
8
4
0
00
Lumber Supplies Expense
2
1
0
00
Insurance Expense
1
5
0
00
Depreciation Expense, Equip
2
4
0
00
Total Operating Expenses
4
2
4
5
00
Net Income
$4
2
3
0
00
PROBLEM 12B-4 (CONTINUED)
CREW LUMBER
STATEMENT OF OWNER’S EQUITY
PROBLEM 12B-4 (CONTINUED)
CREW LUMBER
BALANCE SHEET
DECEMBER 31, 201X
Assets
Current Assets:
Cash
$1
3
4
0
00
Accounts Receivable
1
2
1
0
00
Merchandise Inventory
5
3
0
0
00
Lumber Supplies
6
5
00
Prepaid Insurance
6
5
00
Total Current Assets
$7
9
8
0
00
Plant and Equipment:
Lumber Equipment
$3
3
0
0
00
Less: Acc. Depr., Lumber Equip.
7
1
0
00
2
5
9
0
00
Total Assets
$10
5
7
0
00
Liabilities
Current Liabilities
Accounts Payable
$1
1
7
0
00
Wages Payable
6
5
00
Total Current Liabilities
$1
2
3
5
00
Owner’s Equity
J. Crew, Capital
9
3
3
5
00
Total Liabilities and Owner’s Equity
$10
5
7
0
00
PROBLEM 12B-4 (CONTINUED)
(3)
GENERAL JOURNAL
PAGE 2
Date
Account Titles and Description
PR
Dr.
Cr.
201X
Adjusting Entries
Dec.
31
Income Summary
332
4
3
5
0
00
Merchandise Inventory
112
4
3
5
0
00
31
Merchandise Inventory
112
5
3
0
0
00
Income Summary
332
5
3
0
0
00
31
Lumber Supplies Expense
664
2
1
0
00
Lumber Supplies
113
2
1
0
00
31
Insurance Expense
665
1
5
0
00
Prepaid Insurance
114
1
5
0
00
31
Depreciation Expense, Lumber Equipment
663
2
4
0
00
Acc. Depreciation, Lumber Equipment
122
2
4
0
00
31
Wages Expense
660
6
5
00
Wages Payable
221
6
5
00
Closing Entries
31
Sales
440
22
4
0
0
00
Purchases Discount
551
2
3
5
00
Purchases Returns and Allowances
552
2
8
0
00
Income Summary
332
22
9
1
5
00
31
Income Summary
332
19
6
3
5
00
Sales Returns and Allowances
441
1
9
0
00
Purchases
550
15
2
0
0
00
Wages Expense
660
2
4
5
5
00
Advertising Expense
661
3
5
0
00
Rent Expense
662
8
4
0
00
Lumber Supplies Expense
664
2
1
0
00
Insurance Expense
665
1
5
0
00
Dep. Exp., Lumber Equipment
663
2
4
0
00
31
Income Summary
332
4
2
3
0
00
J. Crew, Capital
330
4
2
3
0
00
31
J. Crew, Capital
330
3
3
0
0
00
J. Crew, Withdrawals
331
3
3
0
0
00